Product

Product

A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs.

Tangible Attributes

Physical traits of a product that can be measured or quantified.

Intangible Attributes

Perceived, felt, or experienced characteristics of a product.

Consumer Goods

Goods purchased by the ultimate consumers for personal use.

Convenience Goods

Inexpensive goods that require minimal shopping effort and are frequently purchased.

Shopping Goods

More expensive goods that require more effort in the purchase decision and can only be bought in certain stores.

Specialty Goods

Very expensive goods available only at a limited number of stores, with exclusiveness sought after.

Unsought Goods

Products that consumers do not actively seek or purchase frequently, such as life insurance and anti-smoking aids.

Industrial Goods

Products purchased by businesses to manufacture other goods rather than for personal consumption.

Durable Goods

Goods that last over an extended period and are purchased infrequently.

Non-Durable Goods

Consumable goods that are used up quickly and must be purchased repeatedly.

Product Life Cycle

The cycle that a product goes through from introduction to decline in the market.

Introduction Stage

The stage in which a new product is launched and consumers are unfamiliar with it.

Growth Stage

The stage when product sales begin to increase dramatically after initial awareness is achieved.

Maturity Stage

The stage where a product's profits peak and the company focuses on defending market share.

Decline Stage

The stage when sales start to fall, leading firms to harvest and potentially delete the product.

Diffusion of Innovation

The process by which new products are adopted by different consumer segments at varying rates.

Innovators

Consumers who are the first to adopt new products, motivated by being pioneers.

Early Adopters

Consumers who value trying new things and are willing to pay higher prices for products.

Majority

Consumers who adopt a new product after a sufficient number of others have tried it.

Late Adopters (Laggards)

The last segment of the market to adopt new products, typically very risk averse.

Perceived Complexity

The degree to which a product is seen as complex, affecting its rate of adoption.

Compatibility

How well a new product fits into existing behavior patterns, influencing adoption speed.

Trialability

The extent to which a product can be sampled on a limited basis before full adoption.

5 Stages of Consumer Decision Process

Awareness, Knowledge, Evaluation, Trial, Adoption.